> For the complete documentation index, see [llms.txt](https://docs.fyda.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fyda.fi/understanding-strategy.md). # Understanding Strategy Each trade has a Budget and token pair, i.e. Invest Token and Stable Token. * **Stable Token** is the quote token for the user's investment. * **Invest Token** is the base currency that the user wants to invest in. * **Budget** is the total notional value specified for the trade. ## Trade Configuration A strategy consists of creating trades entering three possible configurations: buy, sell and floor. * **Buy** represents when to buy tokens. * **Sell** indicates the target price to secure profits. * **Floor** serves as the level to stop trading, cancel strategy or prevent loss. ## Flexibility Fyda provides users with a robust framework for creating a diverse range of trading strategies. It's intuitive platform enables the creation of advanced strategies that cater to individual preferences. Explore dynamic order execution options, fine-tune entry and exit points, and leverage different order types to optimize your trading experience. ## Execution of Strategy Fyda operates a monitoring bot that triggers transactions. The smart contract executes the token swap between the designated token pair when the market price matches the specified numerical values in the predefined strategy. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.fyda.fi/understanding-strategy.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.